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Increasing demand for ÅF’s tendering expertise.

The need for refurbishment, energy savings and new LED road lighting systems has started a wave of public tendering and related services among Denmark’s 98 municipalities.

In the past year and a half alone, ÅF Lighting in Copenhagen has developed lighting-related tender materials for 22 municipalities, as well as specifications for the retrofit of road lighting and operation and maintenance.

According to Kenneth Munck, Senior Lighting Engineer in ÅF Lighting Copenhagen, it all began in 2013 with a seminar conducted by ÅF Lighting and Horten – a recognized Danish law firm specialised in public law. Here, the Danish municipalities were introduced to the great savings potential of road lighting tendering, as well as custom designed models for it.

Great savings potential

Experience shows, that inviting public tender for services such as operation and maintenance of road lighting systems could result in huge savings. In fact, municipalities could save up to 75 percent of their costs in this area.

“Up until 2012, there was hardly any competition on the Danish market, as municipal and national energy companies were the main suppliers of road lighting services. Today, several highly competent players can offer the same services, at a much better price,” Kenneth Munck says and emphasises, that because of the great savings potential, calling for tenders has become common practice.

“Though some still choose to manage the tendering process by themselves, most municipalities lack the resources and technical knowledge to take on the task. Therefore, they turn to professional advisors for help,” he says.

New procurement legislation – new seminar

On January 1st this year, new procurement legislation became effective in Denmark, in order to adhere to EU regulations for competitive procurement of public purchases. Kenneth Munck believes that as a consequence, an increasing number of municipalities will need professional tendering assistance, as the changes add to the complexity of planning and documentation.

“Having worked with so many municipalities, we have great experience with road lighting tenders. This enables us to avoid any errors that may prolong the tendering process or add further costs,” says Kenneth Munck and reveals that ÅF Lighting and Horten are planning a new custom designed seminar for the Danish municipalities on June 9th in Copenhagen.

Kenneth Munck believes that there is potential for developing the Swedish and Norwegian market for procurement services as well, as the demands for refurbishment and energy savings are similar.

“Just like in Denmark, the road lighting systems in Sweden and Norway were originally designed in the 1970’s. Therefore, they need refurbishing with new LED technology. And although Norway is not a member of the EU, the new procurement legislation will influence the public tendering process there as well, as the country must adhere to EU legislation.”